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Hut 8 signs interim deal for Texas mining amid Celsius bankruptcy
As part of the Celsius Network’s bankruptcy proceedings, Hut 8’s mining operation is set to accommodate 66,000 miners and be powered by over 215 MW of energy upon completion.
In the prominent North American digital asset mining and high-performance computing infrastructure provider’s statement, Hut 8 President Asher Genoot expressed confidence in their selection as partners for the Cedarvale mining project, citing the strength of their managed services business managing 680 MW
Genoot emphasized its ability to establish mining infrastructure and optimize operations rapidly. The overarching objective, he noted, is to build goodwill with Celsius creditors while enhancing the resilience of their managed services business, which is expected to oversee more than 895 MW post-site launch.
In 2022, Celsius, among several crypto lenders, faced a collapse, leading to its declaration of bankruptcy in July. Former CEO Alex Mashinsky was arrested in July 2023, facing securities fraud, commodities fraud, and wire fraud charges.
Following Celsius’ recent bankruptcy court approval for a transformation into a creditor-owned Bitcoin mining firm as part of a comprehensive plan to repay customers, Hut 8 has entered into an agreement with Celsius debtors
The development closely follows Celsius’s approval to shift into a post-bankruptcy mining venture managed by U.S. Bitcoin Corp (USBTC), which completed a merger with Hut 8 in November 2023.